Financial Performance - The total revenue of Polyfair Holdings Limited increased by approximately HK$70.2 million or 30.5%, from approximately HK$229.8 million for the year ended March 31, 2020, to approximately HK$300.0 million for the year ended March 31, 2021[19][23]. - The revenue increase was mainly attributed to a sizable project, namely Kai Tak KT1K[19][23]. - Revenue from commercial properties projects was approximately HK$89.7 million, representing about 29.9% of the Group's total revenue, while revenue from residential properties projects was approximately HK$210.3 million, accounting for approximately 70.1%[41]. - The Group's cost of services increased to approximately HK$284.8 million for the year ended 31 March 2021, up from approximately HK$212.3 million for the year ended 31 March 2020, representing an increase of approximately 34.2%[42]. - Gross profit decreased by approximately HK$2.3 million from approximately HK$17.5 million for the year ended 31 March 2020 to approximately HK$15.2 million for the year ended 31 March 2021, with the gross profit margin decreasing from approximately 7.6% to approximately 5.1%[43]. - Profit for the year decreased from approximately HK$3.1 million for the year ended 31 March 2020 to approximately HK$1.9 million for the year ended 31 March 2021, a decline of about 38.7%[58]. Project Management and Operations - The Group was awarded five new projects during the reporting period, with a total contract sum of approximately HK$348.1 million, all of which are now at the commencement stage[28]. - As of 31 March 2021, the Group had 10 projects in progress with a total original contract sum of approximately HK$520.5 million, of which approximately HK$130.6 million was recognized as revenue during the reporting period[28]. - The Group relies on subcontractors for project completion, and underperformance or unavailability may adversely affect operations[92]. - Changes in building material costs and subcontracting fees may lead to cost overruns, impacting financial performance[92]. Administrative and Financial Management - Other income, gain and loss increased by approximately HK$1.6 million for the year ended 31 March 2021, mainly due to subsidies received under the Employment Support Scheme[48]. - Administrative expenses decreased by approximately HK$1.4 million from approximately HK$11.2 million for the year ended 31 March 2020 to approximately HK$9.8 million for the year ended 31 March 2021[50]. - Finance costs decreased from approximately HK$5.6 million for the year ended 31 March 2020 to approximately HK$4.1 million for the year ended 31 March 2021, primarily due to a decrease in the average interest rate of bank borrowings[51]. - Cash and bank balances increased by approximately HK$2.5 million to approximately HK$10.6 million as at 31 March 2021[59]. - Pledged deposits decreased by approximately HK$4.9 million to approximately HK$27.4 million as at 31 March 2021[60]. - The gearing ratio increased from approximately 46.4% to approximately 47.5% as at 31 March 2021[62]. Human Resources - As of March 31, 2021, the Group employed 98 staff, an increase from 87 in 2020[79]. - Total staff costs, including Directors' emoluments, were approximately HK$41.5 million, up from HK$39.4 million in 2020[79]. - Key management's ability to attract and retain staff is crucial for the Group's success[92]. Corporate Governance - The company has complied with the applicable code provisions as set out in the Corporate Governance Code for the year ended March 31, 2021[127]. - The Board currently comprises six Directors, including three executive Directors and three independent non-executive Directors[136]. - The company has established written guidelines for securities transactions by employees, with no incidents of non-compliance noted[130]. - The company is committed to enhancing its corporate governance practices appropriate to the operation and growth of the business[127]. - The Board is responsible for overseeing the Group's businesses, strategic decisions, and performance[135]. - The company has adopted a code of conduct regarding securities transactions by the Directors, which meets the required standard[128]. - The Board met the GEM Listing Rules requirements with at least three independent non-executive Directors, representing one-third of the Board[151]. - Each independent non-executive Director confirmed their independence annually as per GEM Listing Rules[150]. Board and Committee Activities - The Audit Committee held 5 meetings for the year ended March 31, 2021, reviewing quarterly, interim, and annual financial statements[180]. - The Remuneration Committee held 1 meeting for the year ended March 31, 2021, discussing and reviewing the existing remuneration policy and structure for Directors and senior management[186]. - The Nomination Committee held 1 meeting for the year ended March 31, 2021, reviewing the Board's structure, size, composition, and diversity[195]. - The primary duties of the Audit Committee include reviewing financial statements and overseeing internal control procedures[178]. - The primary duties of the Remuneration Committee include making recommendations on overall remuneration policy and structure for all Directors and senior management[184]. - The primary duties of the Nomination Committee include assessing the independence of independent non-executive Directors and making recommendations on appointments[191]. Management Team - Mr. Yu Li An has over 30 years of experience in the construction industry, focusing on project management and operational strategies[102]. - Mr. Wong Kam Man has been with the Group since August 2012, overseeing project management and quality control procedures[104]. - Dr. Lung Cheuk Wah has over 30 years of experience in company secretary, accounting, and finance, serving as an independent non-executive director since January 2018[108]. - Mr. Man Yun Yee, appointed in February 2020, has over 40 years of experience in auditing and management, currently serving as an engagement partner at a CPA firm[113]. - Mr. Wong Chi Yung has extensive experience in accounting and corporate finance, appointed as an independent non-executive director in January 2018[115]. - The Group's management team includes professionals with significant experience in the construction and engineering sectors[107]. Risk Management - The Group's exposure to foreign exchange rate risk is limited, with no foreign currency hedging policy currently in place[78]. - The Group does not face significant foreign exchange risk as most operations are conducted in Hong Kong dollars, Renminbi, and US dollars[82]. - The Group's risk management practices are deemed important to mitigate operational and financial risks effectively[91].
宝发控股(08532) - 2021 - 年度财报